The City and Borough Assembly approved a multimillion dollar infrastructure plan put forward by Wrangell Municipal Light and Power on Tuesday, which is set to tackle a half-dozen deficiencies over as many years.
The decision follows a
utility study commissioned last year which identified a startling number of infrastructural needs the community will need to focus on in the near future. The two largest problems it
identified were Wrangell’s many aging utility poles and its insufficient backup power capabilities.
As presented, the utility’s plan lays out the highest-priority tasks to be undertaken over the coming six years. So in the coming fiscal year beginning in July, the department would
pursue the rebuilding of the grid’s substation feeder attachment, estimated at around $180,000. Last month Southeast Alaska Power Agency agreed to share costs for the project, either up to the amount of $93,310 or else half if costs were lower.
In approving the power department’s proposal, the Assembly also approved an amendment to its budget, enabling it to pursue work on the substation before the next budget cycle.
Other projects outlined in the plan include replacing the power infrastructure along Church Street during the FY 2018 budget period. The cost is estimated to cost from $100,000 to $396,000, but only the latter if using just contracted labor.
The next year would see work on Cow Alley, ranging from $190,00 to $264,000. This would be followed by Case Avenue, from $349,000 to $577,000, then the infrastructure from Zimovia Highway substation to Bennett Street during FY 2021. That project would cost between $150,000 to $360,000.
In FY 2022 the biggest project would be the expansion of Wrangell’s backup diesel generation, costing at $2.7 million. By that point the reserve fund is expected to have reached just over $3 million, provided all prior projects are strictly undertaken in-house by the city. In a less ideal scenario, the reserve would come up about $550,000 short for the new 3 MW generator if work was wholly done by contract.
City Manager Jeff Jabusch explained the power
department would attempt to do as much of the work in each project as it was capable, with some assistance from
contractors as needed. In the meantime, he cautioned there would be a risk that an
increase in power consumption or the downing of the Tyee line could push Wrangell’s
current diesel backups past capacity.
“We would be hard-pressed to meet everybody’s needs,” he said. “That is the real downside of not doing something sooner than that.”
Assembly member Daniel Blake pointed out the plus side, that there would be no rate increases for local consumers in the foreseeable future. However, this would be contingent on work remaining on time and on budget. The Assembly will annually review the power department’s progress, and has the option to implement a rate increase if needed.
In other business, the Assembly approved of a second amendment to the five-year facility lease agreements signed with Charles Jenkins, Steven Keller and Tyler Thompson, all contractors set up at The Marine Service Center.
The Assembly also approved on first reading an amendment to Municipal Code allowing for its members to fully participate in meetings via telephone. This would include voting on items, and follows recommendations from a special work session held on Feb. 23. The new ordinance is based on a combination of Sitka’s code section on meetings and Wrangell’s section on teleconferencing.
In his regular report to the Assembly, Jabusch said he was keeping tabs on the Legislature as it negotiates a budget. Among his concerns as state spending pertains directly to Wrangell are revenue sharing amounts, local jail funding and capital projects.
City staff are currently in the process of putting out a budget of their own, which Jabusch expects will be presented by mid- to late-April. By that time he said it should be better known which direction the state will go with cuts to its various programs. After that the city will have about 45 days to hold public hearings and the workshops it will need before approving a balanced budget.
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